Pay day advances have become very popular in recent years. Sometimes a financial emergency rears its ugly head. At times like those, when you need to put your hands on some money fast and there is no other way to get the cash you need, a payday loan might almost seem like a blessing.
But if you don’t watch out what might look like a blessing can turn around and bite you.
That’s because some people run into some serious problems with payday loans by overusing them.
Luckily there are ways to protect yourself against letting that happening to you.
How to Protect Yourself from Overusing Payday Loans
Most people recognize the both the value as well as the challenges that come along with using a payday loan service. They realize that just as some people use their credit cards excessively to the point where they become both addictive and destructive, using payday loans over and over again can also lead to undesirable results.
Most people look at cash advances as a way to help them deal with some kind of short term financial emergency. After all, that is what they were designed to do.
However some people use these loans the same way they would use their credit cards. Because they enjoy being able to spend money and can use the cash to impress their friends, some people end up using pay day cash advances for non-essential things.
In itself that’s not really bad, although it does mean that you have to pay between $10 and $30 extra for every $100 you borrow.
The big problem arises if you can’t repay the entire amount of the loan from your next paycheck.
Or, if you pay the cash advance back out of your next paycheck but still need money before your next payday, then you’ll have to take out a new payday loan in order to get that money.